AFRICAN BANK INVESTMENTS LIMITED - Trading Statement And Related Information

Trading Statement And Related Information

AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL         ISIN: ZAE000030060
Preference share code: ABLP ISIN: ZAE000065215
("ABIL" or “the group”)

AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank”)


TRADING STATEMENT AND RELATED INFORMATION

Trading statement
Shareholders are advised that both headline earnings and earnings for the period are expected to increase
by between 17% and 19% relative to the R2 339 million reported for the 2011 financial year. Similarly,
headline earnings per share and earnings per share are expected to increase by between 17% and 19%
relative to the 291,0 cents per share reported for the 2011 financial year.

ABIL benefited from strong credit sales and advances growth through its expanded distribution and
innovative products and a slower reduction in yield than in recent years. Cost growth, while higher than in
previous years, remains well below revenue growth, resulting in positive operating leverage. The credit loss
ratio was marginally up from that published in the interim results.

The Retail unit (EHL) experienced sluggish sales as the economy slowed and consumers came under
increasing pressure. However, its improving efficiencies and solid margins helped maintain the positive
momentum achieved through operating leverage in the first half of the year.

The group is comfortable that risk remains well controlled, from the perspective of the economic
environment, recent legislative and regulatory developments, as well as credit quality. It is pleasing to note
that the combination of regulatory scrutiny and heightened awareness by key players in the market have
begun to curb excess supply of credit and that a slowdown of credit extension is evident in the most recent
bureau information. ABIL’s own underwriting interventions during the year have been successful in achieving
the group’s targeted risk adjusted returns and in further limiting its exposure to emerging risk in the market.

ABIL continues to be actively engaged in discussions with the various regulatory and industry bodies about a
range of issues to strengthen the sustainability of the credit industry. We welcome this debate and
wholeheartedly support initiatives that seek to protect the consumer while enabling responsible access to
credit. The National Credit Regulator has been conducting reviews of the underwriting processes and
practices of credit providers. ABIL is satisfied that its policies and procedures are robust and are fully
compliant with the requirements of the National Credit Act.

The forecast financial information, on which this trading statement is based, has not been reviewed nor
audited and reported on by ABIL’s external auditors.

The full year results for the year ended 30 September 2012 are expected to be released on SENS and RNS
on or about Monday, 19 November 2012.



CONFERENCE CALL
ABIL will hold a conference call for interested parties on Wednesday, 31 October 2012 at 16:30 (SA time).
Conference call details
 Access numbers for participants dialling from their country:

 Live call                                             48 hour playback       Code 2134#

 South Africa & Other                                  South Africa & Other
 Toll 011 535 3600                                     011 305 2030

 USA                                                   USA
 Toll-free 1 800 860 2442                              1 412 317 0088

 UK                                                    UK

 Toll-free 0 800 917 7042                              0 808 234 6771


Queries: Investor Relations: Lydia du Plessis on 27 11 564 6991 or investor.relations@africanbank.co.za

Media Relations: Louise Brugman on 27 83 504 1186



Midrand
31 October 2012


Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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